What is contract management process?
Contract management process is formulated to control, coordinate and streamline all stages in the contract lifecycle. It helps companies to enhance the performance of contracts, especially in procurement and sales. The contract lifecycle management tools also enable companies to forecast expected revenues, control procurement costs, and manage suppliers and risks.
However, contract lifecycle management (CLM) is not an easy process. There are various third-party contracts such as purchase agreements, outsourcing agreements, sales agreements, lease agreements, and licensing agreements that need to be managed. The absence of a well-defined contract lifecycle management process can have a substantial impact on the organization in the long-run.
Most companies now swear by contract lifecycle management services to avoid missing out on lucrative revenue opportunities. To avail the best contract lifecycle management services, get in touch with our experts.
Common contract lifecycle management challenges
Inability to track contracts
It is difficult for companies to manage contracts that lack visibility. Many companies tend to avoid contract lifecycle management process as it is time-consuming and costly. However, businesses must ensure that they have complete visibility of their legacy contracts before making enterprise-wide decisions. With relevant information, businesses can easily make amendments in contracts that will aid in contract management. Companies can even outsource contract management which helps them in contract execution and provide detailed insights to make prudent decisions.
Delay in the approval process
Contract lifecycle management requires businesses to map out the process for different kinds of contract and identify the functional areas of the organization that need to be reviewed. This involves various departments of organizations such as operations, sales, legal, and finance. To have an efficient process, it is vital to examine the order of their approval as well. Also, it is crucial for functional areas to understand their tasks and responsibilities when a contract is assigned to them. These tasks are pertaining to editing, approving, rejecting, canceling, identifying next reviewers, and sending for signatures.
Is your organization facing contract management challenges?
Regulatory compliance issues
Many industries are bound to adhere to stringent compliance requirements. This becomes a major challenge for businesses in the contract management process. Moreover, it increases approval cycle times substantially and contracts expenditure for firms. Also, it creates the need for firms to automate contract lifecycle management system, conduct internal compliance audits on an annual basis, and standardize the contract management process.
At SpendEdge, we improve contact visibility and support procurement managers right from the agreement in principle to contract execution and ensure that your organization doesn’t hit to the bottom line due to lost time and revenues. Our procurement experts also provide tailor-made contract lifecycle management solutions that can address the specific needs of your business. We also make sure that our legal documentation best supports the respective needs of companies.